Whenever I present at conferences or training events, the topic of getting retail support for initiatives comes up. After all, it’s all very well having a great idea of what to do in a store to influence shoppers, but unfortunately (so the argument goes) retailers are conservative, and getting them to do anything radical is nigh on impossible. Well – there is some truth in this, and some nonsense. Getting retail support needs a blend of a number of factors. And one of the simplest ways of getting retail support, is to consider a retail test.
Conservative retailers: its not them, its you!
Before we go much further, though, let’s address this. Apparently retailers don’t do anything large, or risky. Well, there is some truth in this, but it’s not all about retailers not being brave. The reality is that much of what manufacturers propose doesn’t work. 90% of new products fail. Perhaps the problem is that brands have a credibility problem? And consider this too. Once upon a time, someone suggested that supermarkets should install in-store bakeries. Just think about that for a minute. Baking, ovens, fresh, health and safety, storage, staff skills. That sounds high risk to me! Next time you are wondering whether you’ll get retail support for your initiative and you wonder if retailers are too conservative, contrast your new idea with the in-store bakery. It’s probably not the retailer that is too conservative – there might be another reason for you not getting retail support.
Getting retail support – the starting point
There are a couple of key starting points to getting retail support for your initiative, whether or not you are planning to do a retail test. First things first, the key account manager must have a really good understanding of the retailer; their business drivers, KPIs and strategies. Positioning your initiative in the light of these is key to retail acceptance. Secondly, use shopper data to demonstrate the power of your initiative.
The power of a retail test to get retail support
Unless your data argument is rock solid, consider a retail test. Retail tests are marvelous. For one thing, they reduce the risk of any initiative (I’m pretty sure the first retailers to install in-store bakeries didn’t roll it across their entire portfolio at once!) Retail tests also give you the opportunity to refine you approach for roll-out, ensuring that when you do go big, you get it absolutely right.
Finally, retail tests give you the opportunity to glean a bit of data from retailers. When you do a test you should always ask for category or store wide data – to observe the test for sure, but that data might well be useful for other analyses too!
Getting retail support: Getting the retail test right
Make sure you know the true cost of the retail test – to all parties
Retail testing isn’t cheap – it takes time and effort and there is an element of risk. Before you go down this route, make sure you understand the cost and risk to both parties. Consider the disruption to ongoing business, potential lost sales, and the amount of time and effort required to implement the test. Then weigh this up against the potential rewards. Make sure a test makes sense, if you want to keep that credibility!
Sell it properly first
As argued above, make sure you’ve sold the idea really well, used all the shopper data you have, and made sure it is clear that this initiative meets the retailer’s needs. If it has been a while since you originally shared the idea or the initiative, it never hurts to remind the other party of the benefits of the proposal before you start discussion how a retail test might work.
Set up control stores
As in all good research, its useful to have control stores to compare the results you are getting in the test stores versus what would have happened otherwise.
Always ask for data and research access
Always. And lots. If you are going to be able to evaluate the retail test effectively you will need data. You’ll need data from the control stores as well as the test stores, and you’ll need data from before, during and after the test. What data might you want? Here’s a simple way to approach that question. First, make a list of all the possible data the retailer could give you. Second, give the list to the retailer. Seriously, ask for as much as you think you can get away with!
If necessary, underwrite any losses
Many of you won’t like this, but the biggest objection you will get when asking for a retail test will be “what if it doesn’t work’. Well – fair point right? If you are confident in your insights, why not? Is it likely to be completely wrong? How much is it likely to cost? And if the risk is high, why would a retailer stump up and take all of the risk? To be clear, I’m not suggesting you should offer this up front, but do your math and give it some thought. If you aren’t prepared to cover the risk of your idea, why would a retailer?
Improve the chances of a roll-out
There is nothing more frustrating than having a ‘successful’ retail test but it not being rolled out. While there is never a guarantee, here are some suggestions to improve the chances of a roll-out.
Set the conditions for roll-out – This is key, particularly if you are going to fund the test. What results are required for the roll-out to happen. Set clear KPIs (and make sure you have the data to prove them). In this, consider all the stakeholders, and make sure you understand (and exceed) any criteria they might set for the initiative to be rolled-out to more stores.
Set the time-scale for roll-out – Agree when the roll-out will take place
Justify the returns on the roll-out – Make it clear how the roll-out will be funded, and make sure that the KPIs set for the roll-out will deliver an acceptable return on investment for all investing parties.
Getting retail support isn’t easy, especially if what you are proposing is in any way radical, or disruptive to the retailer’s business. But asking for a retail test in a limited number of stores reduces the risk, and offers the opportunity to get it absolutely right at roll-out.
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